Precision Drilling Corp (USA) (NYSE:PDS) announced its financial results for the 3Q2016, recording a net loss of $36.3 million, for the period. Following the announcement, the stock recorded a surge in share value, which was mainly driven by the fact that the loss was lower than what analysts had expected. A total of 7 analysts, surveyed by Zacks on Wall Street, expected the company to post $0.17 loss per share, as compared to the announced $0.12 loss per share.

Although the company missed revenue forecasts, by $6.6 million, the fact that it beat analyst estimates indicates improved operational efficiency. Moreover, the current revenue of $154.8 million was also 45% lower than that of the previous year. Precision Drilling noted that it had experienced lower activity in all of its operations, resulting in the revenue decline.

Providing an update on its future expenses, the company stated that it expects to incur $222 million in capital expenses, infrastructure costs, rig upgrades and expansion capital. This figure was $20 million higher than that stated in July 2016, which is being backed by customer contracts. Kevin Neveu, pointed out that customer sentiment had started to grow, following improvements in the commodity prices. He also clarified that the management was being wary of these changes, as they are prone to be volatile.

The CEO also stated that their fourth rig had commenced operation in Kuwait and the fifth would also start operating in November of this year. He also noted that each of the two rigs had been delivered on a budget and on time. Mr. Neveu also voiced his belief that customer inquiries in the region would only increase, as they continue to grow and commodity prices continue to improve. He also pointed out that their activity in the US alone, is 70% higher than that in the preceding quarter. Comparatively, the industry has experienced a rise of 35%, in activity.

Precision Drilling Corp (USA) (NYSE:PDS) closed at a share price of $4.81, after having a trade volume of 5.81 million, during the October 21 trading session, 3.44% higher than the day before.